eCommerce Personalization: Trends, Benefits, Tactics & Examples

John Ahya John Ahya August 12, 2022
10 mins read Last Updated January 04, 2023
The Complete Guide on eCommerce Personalization

Ecommerce personalization is one of the latest trends that has changed the shopping industry. Many successful brands have adopted eCommerce personalization over the years as it is best to engage customers, increase conversion rates, and offer a top-notch experience.

According to Epsilon, 80% of consumers like to purchase from a brand that provides a personalized shopping experience.

If you want to attract more customers and generate revenue, go with eCommerce personalization. However, it requires sufficient time and energy.

If you are still confused about whether to adopt eCommerce personalization, we will provide you with the benefits of personalization in eCommerce.

Besides this, we will also provide the best eCommerce personalization strategies. These are the same strategies leading brands worldwide follow to thrive in the digital world. You can replicate the same strategies for your store to grow faster.

Before we move ahead with these things, let us look at the basics:

What is eCommerce Personalization?

eCommerce personalization is a popular online sales and marketing method that utilizes users’ data to deliver a tailor-made experience to every user.

In this process, you make each user’s journey unique whenever they visit your store. To achieve the same, you need to gather each user’s behavior, demographics, purchase history, and other personal data.

Personalization has become a really essential tool for engaging with existing customers and target prospects.

Besides this, there are various benefits of implementing personalization in your eCommerce store. Let us look at a few of them.

Ecommerce Personalization Trends in 2023

There is a range of trends running among the eCommerce stores for personalization. Here are some of the notable ones:

    • AI-Powered Product Recommendations: It means suggested products by utilizing artificial intelligence technology.
    • Personalization using Image Recognition Technology: It helps online store owners to collect necessary data and then offer a rich experience to users with shoppable content.
    • End-to-End eCommerce Personalization: The eCommerce stores adopt this trend to provide personalized offers to the users based on their search results.

After looking at the eCommerce personalization trends, let us look at the benefits of eCommerce personalization for your store.

Benefits of eCommerce Personalization

Here are some essential benefits of personalization in eCommerce.

Improve Sales Conversions

Anytime a customer visits an online store and plans to buy something, they would not be treated like other users in the store. With eCommerce personalization, customers would be shown what they want.

Moreover, showing product recommendations will help you grab customers’ attention and improve your conversion rate.

Enhanced Engagement on the Website

If a person connects with your brand well, he/she will stay on it for a long and also revisit it in the future.

Research shows that around 60% of people like an online store that remembers all their contact details and buying information. It ultimately increases the engagement on the eCommerce store.

Increase Brand Loyalty

Customers are usually more leaned to a brand that gets them. Whenever customers have great communication, excellent product recommendation, and an irresistible offer, customers return to your store for more. In short, eCommerce stores meet the needs of their customers instantly and increase brand loyalty.

Enhance Customer Experience

Personalization improves the customer experience by enabling you to serve customers well and make their shopping journey enjoyable. Businesses & brands usually store the customer preferences for the first time they visit the store to showcase what they want. Several other ways stores improve customer experience are by saving payment details and updating offers.

Competitive Advantage

If your competitors still need to get eCommerce personalization in place, you will get an added benefit. With personalization, you can make your brand unique among other competitors, and the end-users will like it. Generally, customers would change their minds often. However, if you offer a personalized experience, they will remain with you for a long time and promote your brand indirectly.

Reduce Return Rates

With eCommerce personalization, the majority of people are getting the products according to their needs. Hence, it will decrease product returns.

8 eCommerce Personalization Tactics with Examples

Here we have explained some of the best personalization tactics you can implement in your online store.

1. Create a Personalized Homepage

The homepage is the first thing a user visits on your online store. Hence, it is the most essential page in your store. Therefore, you should welcome your customers in the most effective manner.

With the help of personalization, you can achieve the same.

As compared to the brick & mortar stores, online stores give you the ability to know your visitors from the first visit using cookies.

After having an online store, you should enable cookies on your site. By collecting cookies on your online store, you know many things about your customers. You can further utilize this information to provide top-notch personalization.

Example: Asos
The popular eCommerce site Asos collect cookies to understand user interests and preferences and present information accordingly.

When you visit Asos for the first time, you can see a homepage with categories for men and women.

If you choose a specific category like men, the site will display men’s products rather than the homepage on your next visit. This thing is possible using cookies.

A similar thing applies to the country. Whenever you choose a country on any eCommerce site on the first visit, the next time it directly opens a site for that specific country.

With the help of personalization, you allow users to find what they are looking for easily on every visit. By providing personalization, you make the shopping experience of customers reliable & efficient. It ultimately increases your conversion rate.

2. Include user-generated content in your funnel

One of the most crucial reasons bestseller lists work on eCommerce sites is that customers are highly interested in knowing what other users are buying.

User-Generated Content (UGC) can transform your eCommerce site. Due to UGC, customers on your eCommerce site can know about how a product looks in real life via different videos, images, and reviews posted by users. It further helps you to create a FOMO (fear of missing out) about these products among customers.

A better thing is to include a carousel of photos taken by the customers after the product details. According to a study, 90% of customers consider UGC really beneficial. Moreover, they believe in UGC more than the product details posted on the eCommerce website.

Example: Parachute

It is a popular bedding and bath brand that urges its users to share pictures of themselves utilizing their products on social media with #MyParachuteHome. The brand then shares the pictures on its respective social media handles.

Besides this, the brand goes one step further by utilizing UGC for other crucial promotions. For example, Parachute uses the users’ photos for retargeting rather than utilizing stock images.

3. Provide More Personalized Product Recommendations

Showing personalized product to your customers is one of the excellent eCommerce personalization tips that help you grow. Aside from showing a CTA to customers to consider a product again, you can display the same type of products from different brands.

According to a survey by Invesp, 49% of customers stated that they purchased a product on getting a personalized recommendation. However, they would not buy the product.

In this strategy, you will present the same type of product to the customer that they have viewed earlier. Another great tactic is to offer recommendations of the best accessories that align well with the product which the customer has purchased. For instance, if a customer has purchased a smartphone, you can recommend the user’s back cover, phone holder, tempered glass, etc.

You can also implement another popular strategy known as upselling and cross-selling. Upselling means suggesting products that are pricey that the product customer has in the cart. Cross-selling means selling items to customers based on their browsing without any price range. The core purpose behind this strategy is to increase the average order value.

If you don’t want to bombard suggestions on the product page, you can also suggest them on the checkout page or via email after they purchase a product.

Example: Bliss

It is a skincare and beauty products eCommerce store. The store offers product recommendations considering the problem of the specific user.

For instance, when a customer looks out for a moisturizer related to skin, the store uses its algorithm and displays products related to skin issues.

The title of all the products displayed on the eCommerce store is attractive, and it’s shown along with other products and how users can improve their skin by purchasing the combo. Moreover, the products are placed above the reviews section. Hence, these products gain the users’ attention and force them to buy.

4. Create Unique Campaigns Based on User Behavior

There will be two types of users visiting your eCommerce store. First, users that visit for the first time on your website. Second, recurring visitors with different needs and expectations from your eCommerce store.

Why should you provide a similar experience to both users when you have the option to offer a personalized experience?

To provide a personalized experience, you need to understand how both types of users interact with your website. For the same, you need to look after various things as follows:

      • Popular pages
      • High-converting pages and posts
      • Customers browsing & shopping history, etc.

The core purpose is to understand users’ behavior and deliver products or offers according to their needs.

Exit intent is one of the most well-known techniques for behavior-based campaigns. The end goal here is to get visitors’ attention when they are just going to leave the website and urge them to take a specific action. The action could be anything like subscribing to the list or completing a purchase). Exit intent works for all kinds of users in the store.

You also have the opportunity to personalize individual pages and even personalize on-site messages and present relevant campaigns for the users. Ultimately, this will help you gain more customers and increase your conversion rate.

Example: Shoeline

Shoeline follows a next-gen personalization. If you have signed in and used the site for some time, the eCommerce site shows the products you have viewed and the products that you have purchased.

Moreover, both things are displayed clearly as compared to other popular eCommerce marketplaces.

By keeping these tabs on their site, Shoeline is enticing customers to purchase goods efficiently.

5. Show Recently Viewed Items

Several customers are looking for products on your eCommerce store but don’t want to purchase the right way or they left the store due to some situation.

You can showcase all such users’ recently viewed items in a section on the homepage so that they can purchase the products that they left earlier.

Example: Amazon

Amazon uses strong call-to-action like “Keep Shopping For” to remind users about the last items they have checked. You can also integrate a phrase to get the user’s attention.

6. Use Location-based Personalization

Similar to various eCommerce stores, you are targeting users globally. It is absolutely fine to target globally to reach a wider audience and increase sales. But, it comes with caution.

Your customers would be using different currencies and factors for shopping from your eCommerce store. If your customers belong to a different country, it might be challenging for them to buy from your store.

For instance, in an online shoe store, prices would be displayed in the currency of the home country. Along with that, sizes would be displayed in the country’s style also.

In case a customer belongs to another country, they will have to go to a new tab to identify currency and size converters. They find it challenging and might leave your store.

You can make customers’ tasks easy by providing location-based personalization. Due to this, the necessary data gets modified based on the location from where a customer visits it. If the user accesses the site from Germany, then the price is displayed in German Deutsche Mark and the size in Europe.

In the end, location-based personalization makes shopping quick & effective for customers.

Example: Very.co.uk

The eCommerce site utilized geolocation to show campaigns depending on the weather in a specific location.

On a sunny day, the homepage looks like this:

In winter, it looks like this:

The site adopted the trend of personalized products depending on the seasons to increase sales.

7. Make a Personalized Bestseller List to Increase CTR

One of the most effective strategies to increase CTR and conversions on your eCommerce store is to display a “popular list” or “bestseller list”. You can go one step ahead and display “popular products” or “bestsellers” considering the user’s past purchases and browsing history. By this, you are validating that they want these products.

People want validation about their purchases, and by watching what their peers are purchasing, they also get attached to products, and this results in a conversion.

You can utilize this eCommerce strategy in a unique manner by showing the bestseller list based on the location. It works well when you are selling products in different climates or you are selling sportswear. For instance, customers in New Jersey are not buying the same clothing as people living in Manhattan. Hence, understand what users want in a specific location and present a bestseller list accordingly.

8. Offer Personalized Gift Options

Many people like to purchase products with gift packaging for someone special. Instead of adding a separate product page for gifts, you can display an option where users can add a personalized note for the special ones.

Besides this, you can also offer an option of secure gift packaging for all users. However, if you only provide an option to add a gift note, customers would be grateful.

Final Words

Customers love to get a personalized shopping experience in exchange for information. With the help of eCommerce personalization, you can create a strong relationship with your business with the customers.

We hope that you have understood the importance of eCommerce personalization and popular eCommerce personalization tactics that you can implement in your store.

Webdesk solution is a leading eCommerce development company. We can create a customized eCommerce website with all eCommerce personalization tactics. Moreover, we can do the necessary marketing to increase conversions and generate more revenue. Share your project requirements with us, and we will provide you with a free quote.

John Ahya
John Ahya

John is the President and Co-Founder of WebDesk Solution, LLC. Living the digital agency life for over 10 years, he explores an extensive eCommerce world. He has immense experience in all major e-commerce platforms. Being a nature lover, he likes to breathe the fresh air on the hill stations during vacations.

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